Should I invest in a money market account or a mutual fund?

I want to save for a trip to Italy for about 12 months. I plan to make 2 deposits a month totaling anywhere between $600-1200 each month. Which would be a better option for me? I am not too clear on the differences between the two as opposed to a regular savings account. Please help me.

money market fund will be safest - odds are good you wont lose any money. Mutual fund you can lose money - not good if you are going to need it in 12 months.

Money markets pay a bit more than a regular bank savings account but not by much. Ask your bank about a 6 or 12 month CD also. Pays a bit more, is safe, but your money is locked in for whatever period you get.

Money Market. Find a Credit Union. Shop for the best interest rates. They are pretty low right now. After 6 months of saving, take out a 6 month CD for the money saved. Higher interest in CD's. Then keep saving in the money market. CD will renew and you have 7-10 days to take money out. Right in time for your trip. These accounts if done at a bank or credit union are FDIC insured up to 100K

If you're not going to touch the money for a year, and have some money up front, I'd put some of it in CD's They usually have 1,3,6 and 12 month CD's. They run a slightly higher rate of return than a money market, but the caveat is that you will take a hit if you pull the money early. That's why I said if you know your time frame for sure a CD might be best. Bascially the money market rotates around short terms debt issues like treasury bills and the like. If you go to any bank's website, they will give you the rates of the day.

Hope this helpls,
Andy

i would say for mutual fund..but mutul fund investment is big amount of money such as usd2,000,000..
i'm one of the global investor had invest under mutual fund company that had been operate nearly 60years since 1948..
the reason i can afford the investment is becoz the target of this investment is for a regular people like us..
investment range $100-$100,000...
you just invest once and wait for 15month to the maturity date..
you also can withdraw your money every month..so you can do saving everymonth..
visit this website below for more information...